WhiteSource Raises $75 Million to Help App Developers With Security

By Jemima McEvoy Saturday, April 10, 2021

WhiteSource has raised $75 million in a Series D funding round. The Tel Aviv-based company manages security for app developers, helping to identify vulnerabilities and other issues early on. Having been around for over a decade, the company already has an established — and growing — customer base. This funding round will only propel WhiteSource forward with its goals.

An IT programmer working at his computer.

What Is WhiteSource?

The open source company was founded in 2011 by entrepreneurs Azi Cohen, Rami Sass, Ron Rymon, and Roni Einav. According to the company website, the founders came up for the idea for WhiteSource when trying to sell their previous business, a software company called Eurekify, in 2008 to CA Technologies. While in the final stage of the deal, a report they had to send over came up with a mysterious issue and they had to resort to “expensive and time-consuming code-scanning.”

The business was founded to help other business leaders avoid the same roadblock. WhiteSource markets itself as “the only all-in-one licensing, security, and reporting solution for managing open source components.” The technology operated by the company scans apps for issues and alerts their owners before it’s too late.

Money and Investors

The idea of the business has gained significant interest from investors over the years. According to Crunchbase, the technology business has raised a total of $121.2 million in funding since it was founded. The amount of money has built over the years from a $150,000 seed round in 2011 to a $10 million Series B in 2017, led by 83North. The company then earned $35 million in a 2018 Series C round led by Susquehanna Growth Equity.

The round closed this month — which added $75 million to WhiteSource’s bucket — was led by Pitango Growth, an Israel-based venture capital fund. Other participants in the round included previous investors in the business: M12, Susquehanna Growth Equity, and 83North.

Future of the Company

WhiteSource plans to use the money to expand its business offerings and capabilities to move beyond just open source code, Sass said in an interview with Crunchbase. The goal is to develop technology also capable of detecting vulnerabilities in proprietary code, which is commonly used by companies.

In addition to the challenges of development, the company has mounting competition to contend with. There are many startups developing technology to provide security checks for app developers. For example, Synk, a Boston-based company, recently closed a $300 million funding round and is now valued at $4.7 million. Another example is Synopsys, a publicly traded company that offers an application security platform.

While WhiteSource is certainly facing some big competitors, the company has not let on any sense of threat. In fact, the founders report massive growth over the next few years which should provide a sense of hope for the future. According to Sass, the company saw its revenue grow 800% over the last three years and is currently closing on 1,000 new customers.

Final Takeaways

Things look so good that there might be exciting news on the horizon, according to Sass. The founder said that WhiteSource might be ready for an IPO within the next two to three years. “We are not as far away as some may think,” said Sass.

About the Author

Headshot of Jemima McEvoy

Jemima is a journalist who enjoys reporting on business, particularly small business and entrepreneurship.

Related Articles